§ 27-20.3-3 - Contracts.
SECTION 27-20.3-3
§ 27-20.3-3 Contracts. – (a) A nonprofit prepaid legal service corporation may contract with itssubscribers for legal services that may be provided under any nonprofit prepaidlegal services plan adopted by the corporation.
(b) Every nonprofit prepaid legal service corporation shall,before accepting applications for participation in a nonprofit prepaid legalservices plan, establish a reserve fund of not less than ten percent (10%) ofthe claims and expenses projected by the board of directors of the corporationfor its first fiscal year of operation. At the time or times that thecorporation shall adjust its rates, it shall include a factor for theprotection of its subscribers projected to produce a reserve fund at the end ofthe rating period applied for of not less than ten percent (10%) of the mostrecent twelve (12) months of claims and operating expenses available at thetime of filing its request for approval of the rates.
(c) The rates charged by the nonprofit prepaid legal servicecorporation to its subscribers shall be consistent with the proper conduct ofits business and the interests of the public, and shall at all times be subjectto the approval of the director of business regulation.
(d) Nothing contained in this chapter or in any nonprofitprepaid legal service plan shall affect the ordinary professional relationshipbetween the person rendering legal services under the plan and the subscriberto whom the services are rendered; and no action based upon or arising out ofthe relationship or relating to legal services rendered pursuant to a nonprofitprepaid legal services plan shall be maintained against the nonprofit prepaidlegal service corporation operating the plan.